THE TIPSTER

THE FTSE 100 index was vacillating around the 5,200 level at the end of last week, eventually closing at 5,126 on Friday. But this is still some 10 per cent below the blue-chip index’s 2010 highs. However, the German Dax 30 index is only 3 per cent off its highs for the year so the FTSE 100 could have some catching up to do. Capital Spreads quotes 5,122-5,123 on its rolling daily spread.

BSkyB shares opened up 2 per cent on Friday after news that the satellite group had agreed to buy Virgin Media’s channels business, Virgin Media Television, for up to £160m in cash. But the stock fell in line with the rest of market to end the week at 574.9p. Look for dips towards the 540p region for opportunities to pick up a position in BSkyB. Spread Co offers a spread on BSkyB of 574p-575.5p.

Commodities might have struggled to gain some traction following the heavy losses suffered last month but natural gas has stood out, rallying more than 10 per cent over the past week to hit a three-month high. The latest inventory report showed stockpiles rising by less than expected, which triggered a break above the 200-day moving average at $4.54 per million British thermal units. The initial target is $5.05. IG Index has a July spread of $4.881-$4.911.

Retailer Halfords is scheduled to release full-year results this Thursday and the expectation is for a robust performance. The group issued a strong fourth quarter update at the end of March, helped in part by increased trading in higher gross margin categories. Stockbroker WH Ireland expects the results to be relatively upbeat and views the retailer as a quality defensive play in the space. But after the strong share price performance seen in recent months, its analysts fail to see the catalysts for a re-rating from current levels in the short-term and would be buyers on weakness. Spreadex offers 505.7p-508.8p.

Drinks manufacturer Davide Campari-Milano has been a strong performer over the past three months, with its share price rising 11 per cent in absolute terms. But Evolution Securities reckons it is now trading at a premium and prefers Diageo in the short-term. IG Index offers €4.1808-€4.1892 for Campari and 1,068.9p-1,071.1p for Diageo.